London CNN —Britain’s second-biggest city effectively declared itself bankrupt on Tuesday, shutting down all nonessential spending after being issued with equal pay claims totaling up to £760 million ($956 million).
Birmingham City Council, which provides services for more than one million people, filed a Section 114 notice on Tuesday, halting all spending except on essential services.
The deficit arose due to difficulties paying between £650 million (around $816 million) and £760 million (around $954 million) in equal pay claims, the notice report says.
The city now expects to have a deficit of £87 million ($109 million) for the 2023-24 financial year.
Sharon Thompson, deputy leader of the council, told councilors on Tuesday it faces “longstanding issues, including the council’s historic equal pay liability concerns,” according to the United Kingdom’s PA Media news agency.
Persons:
London CNN —, Sharon Thompson, Thompson, Birmingham “, ”, “, Rishi Sunak, John Cotton
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London CNN, Birmingham City Council, United Kingdom’s, Media, Conservative Party, UK, BBC, Commonwealth Games, Commonwealth
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Birmingham, ” “, England